T-Mobile US, Inc. (TMUS): Business Model Canvas [Dec-2025 Updated]

You're looking at the strategic blueprint of T-Mobile US, Inc., and frankly, it's a masterclass in telecom disruption, moving well beyond just phone service. After a decade analyzing giants like this, I see a company that's using its massive mid-band 5G spectrum advantage to aggressively pivot into home broadband, aiming for over 8.0 million Fixed Wireless Access customers by late 2025. This isn't just about adding lines; it's about building a converged network, backed by a forecasted Adjusted Free Cash Flow of $17.8 billion to $18.0 billion for 2025, even while spending $9.5 billion to $10 billion on network CapEx. If you want to see exactly how the Un-carrier ethos translates into concrete Key Activities, Resources, and Revenue Streams-from AI platforms to fiber JVs-dive into the full Business Model Canvas below.

T-Mobile US, Inc. (TMUS) - Canvas Business Model: Key Partnerships

You're looking at the backbone of T-Mobile US, Inc.'s competitive edge-the strategic alliances that make its network and customer offerings unique as of late 2025.

Starlink (SpaceX) for T-Satellite Rural Coverage

The T-Satellite service, a direct-to-cellular offering with SpaceX's Starlink, commercially launched on 23 July 2025, following a beta phase that involved nearly two million users.

This partnership is designed to cover "well over half a million square miles" across the U.S. where terrestrial towers simply can't reach. The service is powered by over 650 Starlink Direct to Cell satellites.

• Initial service capability at launch: Text messaging (SMS and MMS) and emergency communications.
• Expansion date for basic data access: 1 October 2025, for select applications like WhatsApp and AllTrails.
• Compatibility includes Apple's iPhone 13 through 16 series and Samsung Galaxy S21+ and newer.

OpenAI and Nvidia for AI-driven Network and Customer Platforms

T-Mobile US, Inc. is deploying the IntentCX platform, custom-built with OpenAI, to revolutionize customer engagement. As of the latest earnings call in October 2025, early elements of this system were already touching customers and starting to affect actual results, particularly in streamlining device upgrades.

The ambition for IntentCX is significant: to reduce inbound customer contacts to Care by 75%. Furthermore, T-Mobile US, Inc. established an AI-RAN Innovation Center in Bellevue, Washington, in collaboration with Nvidia, Ericsson, and Nokia, to integrate AI into the radio access network (RAN) for network optimizations.

Fiber Joint Ventures (e.g., KKR/EQT for Lumos/Metronet)

The company is augmenting its 5G broadband success with fiber-to-the-home through joint ventures. T-Mobile US, Inc. expected to close on the Metronet acquisition on 24 July 2025. The overall fiber strategy targets passing 12 to 15 million or more households by the end of 2030.

These fiber ventures are projected to yield an all-in internal rate of return of around 20%. This complements the 5G broadband base, which reached 7.3 million net customers by the end of Q2 2025.

Device OEMs (Apple, Samsung) for High-End Smartphone Supply

The relationship with major Device Original Equipment Manufacturers (OEMs) like Apple and Samsung directly impacts equipment revenue streams. In the second quarter of 2025, equipment revenues reached $3.4 billion, an 11% increase year-over-year, supported by greater sales of high-end smartphones.

For context, equipment revenue in the fourth quarter of 2024 was approximately $4.70 billion. The T-Satellite service itself relies on compatibility with recent high-end devices from these partners.

Deutsche Telekom AG as the Majority Shareholder

Deutsche Telekom AG remains the majority shareholder of T-Mobile US, Inc. As of September 30, 2025, T-Mobile US, Inc. served 140 million subscribers.

While the last explicitly dated stake was 51.4% as of April 2023, this relationship is foundational to the US entity's structure. The parent company raised its full-year 2025 core profit forecast to around 45 billion euros.

Here's a quick look at some key partnership-related figures:

Partnership Focus Area	Metric	Value / Amount	Reporting Period / Target
Starlink Coverage	Projected Uncovered Area	500,000 square miles	Full Deployment
Starlink Deployment	Active Satellites Supporting Service	650+	Late 2025
OpenAI/Nvidia AI	Targeted Reduction in Care Contacts	75%	Goal
Fiber Joint Ventures	Households Passed Target	12 to 15 million	By End of 2030
Device OEMs	Q2 2025 Equipment Revenue	$3.4 billion	Q2 2025
Deutsche Telekom Stake	Majority Shareholder Stake (Reported)	51.4%	As of April 2023
T-Mobile Subscribers	Total Subscriber Count	140 million	As of September 30, 2025

T-Mobile US, Inc. (TMUS) - Canvas Business Model: Key Activities

You're focused on the execution that drives T-Mobile US, Inc.'s market position, which means keeping the network ahead and integrating massive acquisitions while keeping customers happy. Here are the hard numbers reflecting those Key Activities as of late 2025, primarily based on third quarter 2025 results.

Deploying and optimizing the 5G Advanced network

T-Mobile US, Inc. is actively deploying its next-generation network capabilities. The company announced in April 2025 that T-Mobile 5G Advanced is now nationwide, built upon the industry's only 5G Standalone (5G SA) architecture. This deployment is crucial for enabling next-level performance, including low-latency experiences. The network's performance is being actively managed through technology; for instance, the use of AI technology in the Radio Access Network (RAN) has reportedly halved the downtime per subscriber. As of the second quarter of 2025, T-Mobile US, Inc. achieved 90.8% population coverage with its 5G network.

The core network activities are supported by significant investment:

• The company boosted its full-year 2025 Capital Expenditures (cash purchases of property and equipment) guidance to approximately $10.0 billion.
• In Q2 2025, T-Mobile US, Inc. reported industry-leading median download speeds of 299 Mbps.

Integrating acquired assets, like UScellular and fiber JVs

The integration of acquired assets, notably UScellular, which closed on August 1, 2025, is a major operational focus. T-Mobile US, Inc. has accelerated the integration timeline, now targeting completion in approximately two years, down from the original three-to-four-year estimate. The costs to achieve this integration are expected to be approximately $2.6 billion. The synergy expectations have been increased, now targeting $1.2 billion in total annual run-rate cost synergies, which is a 20% increase from the initial $1.0 billion guidance.

Here's the quick math on the projected Q3 2025 financial impact from the UScellular acquisition:

Metric	Projected Q3 2025 Amount
Service Revenues	Approximately $400 million
Core Adjusted EBITDA	Approximately $125 million
Costs to Achieve Integration (Excluded from Core EBITDA)	Approximately $100 million
Depreciation and Amortization Expenses	Approximately $175 million

The integration of UScellular's 12,000 cell sites is expected to increase combined network capacity by 50%. Furthermore, fiber joint ventures, including the Lumos JV completed in April 2025, are expected to contribute 100,000 or more fiber net additions for the full year 2025.

Managing and expanding Fixed Wireless Access (FWA) capacity

Managing capacity for Fixed Wireless Access (FWA) is key, as the service is a major growth driver. In the third quarter of 2025, T-Mobile US, Inc. added 506,000 5G fixed wireless access customers. This strong performance contributed to total broadband net customer additions of 560,000 in the quarter. The company ended Q3 2025 with 8.0 million 5G broadband customers. The FWA service remains a speed leader, with median download speeds nearly 50% faster than its nearest rival. Still, the demand is high; as of early 2025, the FWA waitlist had reached over one million homes.

Digital transformation and AI development (IntentCX platform)

T-Mobile US, Inc. is driving digital transformation, notably through its AI platform, IntentCX, developed with OpenAI. As of the third quarter of 2025 earnings calls, early elements of IntentCX were 'starting to touch customers' and affecting actual results. The platform is designed to proactively solve customer issues, with an ultimate goal to reduce inbound customer contacts to Care by 75% and lower operating costs. This digital focus is evident in customer transaction behavior; 75% of customers upgrading their iPhone devices in the recent preorder window used digital channels. The T-Life mobile app, central to this digital engagement, has over 85 million installs. The company is also integrating Ericsson Charging Evolved, an AI-powered billing solution, into its business support systems.

Acquiring and retaining high-value postpaid customers

The core activity of acquiring and retaining postpaid customers remains robust, though churn is a factor, especially with new acquisitions. In Q3 2025, T-Mobile US, Inc. achieved its best-ever total postpaid net customer additions at 2.3 million. Postpaid phone net additions were 1.0 million, marking the highest Q3 figure in over a decade and leading the industry. Postpaid net account additions for the quarter were 396,000, representing a 26% increase year-over-year. The company raised its full-year 2025 guidance for total postpaid net additions to between 7.2 million and 7.4 million.

Retention metrics show strong underlying performance, despite the temporary impact from the higher-churning UScellular base:

• Postpaid phone churn in Q3 2025 was 0.89%.
• Excluding the acquired customer bases, underlying Postpaid ARPA (Average Revenue Per Account) growth for full-year 2025 is expected to be at least 3.5% versus 2024.
• Excluding acquisitions, Q3 2025 Postpaid ARPA grew 3.8% to $149.44.

Here is a summary of the key customer growth metrics for Q3 2025:

Customer Metric (Q3 2025)	Amount
Total Postpaid Net Additions	2.3 million
Postpaid Phone Net Additions	1.0 million
Postpaid Net Account Additions	396,000
5G Fixed Wireless Access Net Additions	506,000
Total Broadband Net Additions (FWA + Fiber)	560,000

T-Mobile US, Inc. (TMUS) - Canvas Business Model: Key Resources

You're looking at the core assets T-Mobile US, Inc. relies on to execute its strategy as of late 2025. These aren't just line items; they are the engines driving customer acquisition and financial performance.

Extensive mid-band 5G spectrum holdings

T-Mobile US, Inc.'s foundation is built on its spectrum position, particularly the mid-band airwaves acquired primarily through the Sprint merger. This spectrum is key to delivering the Ultra Capacity 5G experience.

As of late 2024, T-Mobile US, Inc. CEO Mike Sievert indicated that the company had deployed only 60% of its total 2.5GHz spectrum holdings, leaving 40% remaining for future build-out and capacity expansion. This remaining mid-band capacity is a massive resource for scaling services like 5G Home Internet.

The company also executed strategic divestitures and acquisitions; for instance, T-Mobile US, Inc. divested its 3.45 GHz upper mid-band spectrum holdings on September 30, 2024.

The resource profile includes:

• 2.5GHz Spectrum Deployment Status: 60% deployed as of late 2024.
• Remaining 2.5GHz to Deploy: 40%.
• 3.45 GHz Spectrum: Divested on September 30, 2024.

National 5G network infrastructure

The physical network infrastructure, heavily reliant on the mid-band spectrum, translates directly into market coverage and performance metrics that underpin the value proposition. While the specific landmass coverage of 36% isn't directly in the data, the population coverage figures are compelling.

By the second quarter of 2025, T-Mobile US, Inc. reported achieving 90.8% 5G availability score, meaning subscribers had an active 5G signal that percentage of the time. This network leadership is a tangible asset.

Key network statistics as of mid-2025 reports:

Metric	Value	Context/Date
Total Population Covered by 5G Network	Over 325 million people	As of 2025.
Population Covered by Ultra Capacity Mid-band 5G	About 285 million people	As of 2025.
Overall 5G Coverage (Americans)	98% of Americans	As of mid-2025.
5G Availability Score (Ookla)	90.8%	First half of 2025.

The network also supports significant growth in fixed wireless access (FWA).

The 'Un-carrier' brand and customer-centric corporate culture

The brand equity, often called the 'Un-carrier' mentality, manifests in specific customer benefits and market perception, which is a resource for reducing churn and driving premium plan adoption. T-Mobile US, Inc. is positioned as the value leader.

This culture is evidenced by specific customer offerings and market perception:

• International Data: Free international data included in some plans in over 200 countries.
• Customer Perks: Inclusion of benefits like Netflix and inflight Wi-Fi on qualifying plans.
• Customer Status: Offering Magenta Status from day one for customers.
• Network Awards: Awarded Best Mobile Network in the U.S. by Ookla for the first half of 2025, based on a Speedtest Connectivity Score of 74.45.

The company's focus on 'best network, best value and best experiences' is a core differentiator.

Forecasted 2025 Adjusted Free Cash Flow

The ability to generate significant cash flow is a critical resource for debt management, share repurchases, and investment. Following strong Q2 2025 results, T-Mobile US, Inc. raised its full-year guidance.

The updated guidance for the full year 2025 is expected to be between $17.6 billion and $18.0 billion for Adjusted Free Cash Flow. This follows a record Q2 2025 Adjusted Free Cash Flow of $4.6 billion.

For context on the Q3 2025 outlook, Core Adjusted EBITDA guidance was raised to a range of $33.3 billion to $33.7 billion.

Retail and digital distribution channels

The channels used to reach and serve customers, including physical retail stores and digital platforms, are vital for subscriber growth and service delivery. The company's growth is also fueled by strategic acquisitions that expand its footprint.

T-Mobile US, Inc. has continued to grow its customer base through strategic M&A, including the acquisitions of U.S. Cellular Assets and Mint Mobile.

Key distribution/customer base metrics:

Channel/Segment	Metric	Value
Total Customer Connections	Record High	132.8 million as of Q2 2025.
5G Broadband Customers	Total Base	8.0 million as of Q3 2025.
5G Broadband Net Adds	Q2 2025	454 thousand, up 12% year-over-year.
Fixed Wireless Waiting List	Demand Indicator	Over 1 million customers unable to sign up due to capacity constraints (as of early 2025).

The company is also expanding its reach through fiber joint ventures with entities like MetroNet and LUMOS.

T-Mobile US, Inc. (TMUS) - Canvas Business Model: Value Propositions

You're looking at the core differentiators T-Mobile US, Inc. is using to win share in late 2025. It's all about leading on network quality while maintaining that aggressive, customer-first pricing stance. Honestly, the numbers from Q3 2025 show this strategy is working well for them.

Best 5G network performance and coverage

T-Mobile US, Inc. positions its network as the industry leader, especially in 5G. For the first half of 2025, Opensignal recognized them as the 5G Global Winner in 5G Coverage Experience and Global Leader in 5G Reliability. Furthermore, Ookla data for 1H 2025 named T-Mobile the Best Mobile Network in the U.S. You can see this reflected in the metrics.

Metric	Value (1H 2025 or latest available)	Source Context
5G Availability Score	90.8%	Leading score for time connected to 5G signal (H1 2025)
Median Overall Download Speed	245.48 Mbps	Overall median download speed (H1 2025)
Median 5G Download Speed	299.36 Mbps	Median 5G download speed (H1 2025)
5G Availability (RootMetrics)	93.8%	Highest 5G availability (H1 2025)
Nationwide 5G Advanced Coverage	Live	First US network to offer nationwide 5G Advanced (April 2025)

The carrier was the only one to post median download speeds of at least 100 Mbps in every metropolitan market tested by Ookla in 1H 2025. They also reported that the iPhone 17 achieved median overall download speeds nearly 90% faster than one benchmark competitor on their network as of late 2025.

High-value, no-compromise mobile plans (Un-carrier ethos)

The Un-carrier ethos translates into new, simplified plans with long-term price protection. In April 2025, T-Mobile US, Inc. introduced the Experience More and Experience Beyond plans, both featuring a 5-year price guarantee on talk, text, and data. For new switchers, the value proposition includes up to $800 per line to help pay off competitor phones.

Here's a look at the structure of the new core offerings as of mid-2025:

• Experience More: Includes all Go5G Plus benefits, 60GB of high-speed hotspot data, and is priced $5 less per line than the previous tier.
• Experience Beyond: Includes Go5G Next benefits plus more data, offering over $200 in added value per line, every month.
• Essentials Family Plan: Four voice lines for just $100/month, plus taxes and fees.
• Price Lock: The price for talk, text, and data is guaranteed to stay the same for five whole years from sign-up.

To be fair, this focus on new value comes alongside price adjustments on older plans; for instance, starting April 2, 2025, T-Mobile US, Inc. added an extra $5 per line onto several legacy monthly plans.

Affordable, high-speed home internet via Fixed Wireless Access

T-Mobile US, Inc.'s 5G Fixed Wireless Access (FWA) is a major growth pillar. In Q3 2025, they added 506,000 5G FWA customers, bringing their total base to just under 8 million customers. This segment saw FWA grow by 22% year-over-year in that quarter. The service is marketed as fast, with median download speeds nearly 50% faster than its nearest rival as of Q3 2025.

Bundled mobile, FWA, and fiber services

The convergence of wireless and home broadband is a key value driver, as the company's 5G broadband ARPU and customer lifetime values are reported as very similar to the postpaid phone business. In Q3 2025, total broadband net customer additions hit 560,000, which included 506,000 5G broadband adds and 54,000 fiber net adds (plus 755,000 fiber customers acquired from Metronet). Management raised its full-year 2025 guidance for total postpaid net additions to between 7.2 million and 7.4 million. Postpaid ARPA (Average Revenue Per Account) growth for the full year 2025 is expected to be at least 3.5%, with the underlying growth, excluding M&A impacts, expected to be approximately 4%.

T-Mobile Tuesdays and included customer perks

The Un-carrier legacy continues with T-Mobile Tuesdays, which thanks customers weekly via the T-Life app. Based on the value offered in 2024, T-Mobile US, Inc. provided over $1,000 worth of freebies, giveaways, and perks. For example, in a June 2025 offering, perks included:

• A free large 7-Eleven Slurpee drink every month.
• $5 movie tickets through Atom Tickets.
• $0.25 off per gallon of Shell gas (up to 20 gallons) with Fuel Rewards Gold Status.
• 10% cash back at participating restaurants every Tuesday.

The new Experience plans also bundle significant streaming value; Experience Beyond includes Netflix Standard with ads ON US and Hulu ON US, while Apple TV is available for just $3/month. Also, watch and tablet lines on these plans are offered for just $5/month per line.

T-Mobile US, Inc. (TMUS) - Canvas Business Model: Customer Relationships

You're looking at how T-Mobile US, Inc. manages its relationship with its massive customer base as of late 2025. It's a clear pivot toward digital self-service, heavily supported by AI, while still maintaining dedicated support for its enterprise clients. The goal is to make every interaction frictionless, moving away from the old, multi-step processes the industry was known for.

Automated and AI-driven customer service (IntentCX)

T-Mobile US, Inc. is leaning hard into its partnership with OpenAI to deploy IntentCX, an intent-driven AI-decisioning platform. This platform is trained on billions of data points from actual customer interactions, moving beyond simple rules-based systems. The system is designed for real-time correlation, comparing network and service data with inbound complaints to proactively take next steps for customers. This is a core part of the strategy to make the complicated simple.

• IntentCX is designed to deliver personalized service based on individual customer data.
• It aims for faster responses by managing thousands of conversations simultaneously.
• The platform connects to T-Mobile US, Inc.'s transaction and care systems for autonomous resolution.

Direct-to-consumer (D2C) model via digital channels

The D2C strategy is evident in the massive push toward digital transactions, which is also reflected in the company's strong customer acquisition numbers. For instance, T-Mobile US, Inc. recorded its best-ever total net postpaid customer additions at 2.3 million in the third quarter of 2025. Furthermore, the company is extending its digital reach into previously uncovered areas through its direct-to-cellular (DTC) service with Starlink. The commercial launch of this T-Satellite service happened in July 2025, covering a swathe of around 500,000 square miles beyond terrestrial coverage. The free trial for the beta service, which started in January 2025, saw 1.8 million people sign up by June 2025.

The success of this digital focus is quantifiable in transaction metrics:

Digital Metric	Value / Percentage (Late 2025)
iPhone Sales via T-Life App (September 2025)	75 per cent
Postpaid Phone Upgrades Enabled on T-Life	More than 66 per cent
iPhone Upgrades via Digital Channels (Q3 2025 Preorder)	Three-quarters
Target Time for Easy Switch Carrier Swap	15 minutes

Personalized, self-service options via the T-Life app

The T-Life app is the central hub for this self-service push, having surpassed 85 million app installs as of the third quarter of 2025. The company is working to retire legacy systems, with a goal to have 100 per cent of transactions running through T-Life by late 2026. This streamlining effort is designed to reduce complexity; for example, a service plan upgrade that used to be an approximately 36 step process is now intended to feel like a transaction you're doing in 2025. The app also functions as T-Mobile US, Inc.'s loyalty and rewards platform, where users earn points for actions like paying bills.

• T-Life app rating on the App Store was reported at 4.4 out of five.
• Key perks include bill credits ranging from $5 to $50.
• The T-Life app integrates with the IntentCX platform for self-service problem resolution.

Dedicated T-Mobile for Business account management

For its business segment, T-Mobile US, Inc. maintains dedicated account management, projecting this division to expand at a Compound Annual Growth Rate (CAGR) of 5.5% through 2029. The offerings are tiered to meet varying business needs, from small teams to large enterprises. For shared accounts, text usage reporting combines both your usage and the pooled usage. Here are some examples of the pricing structure for their Business Performance plans (based on 6 lines with AutoPay and 3rd line free):

Business Plan Tier	Approximate Monthly Cost Per Line
CoreMobile	$21/mo
ProMobile	$34/mo
SuperMobile	$42/mo

Finance: review the Q3 2025 impact of the $2.7 billion net income on the enterprise customer service budget by Monday.

T-Mobile US, Inc. (TMUS) - Canvas Business Model: Channels

The distribution and sales channels for T-Mobile US, Inc. reflect a multi-pronged strategy spanning physical retail, digital platforms, and strategic infrastructure partnerships to reach its growing subscriber base.

Owned and operated T-Mobile retail stores

The physical footprint remains a core channel for direct customer interaction and sales. As of October 15, 2025, T-Mobile US, Inc. operated 6,095 stores across the United States. The company has shown a philosophy of favoring corporate-owned locations, with nearly half of its locations being corporate-operated, moving against the general trend of Tier 1 carriers relying more on dealer-operated stores.

The geographic concentration of these owned stores is significant in high-population states:

• The number of T-Mobile stores in California was 662, representing 11% of the total.
• Texas had 574 locations, accounting for 9% of the total.
• Florida housed 463 stores, making up 8% of the network.

This physical presence also serves as a key channel for T-Mobile Home Internet, which is sold at nearly 13,000 stores, including T-Mobile and Metro locations, plus third-party retailers like Sam's Club and Costco.

National retailers and third-party distributors

Sales through third-party channels are integrated, particularly for broadband products. The total reach for T-Mobile Home Internet sales across its own stores and national retailers like Sam's Club and Costco is nearly 13,000 stores. The recent acquisition of UScellular assets in 2025 also brings a network of stores into the T-Mobile US, Inc. ecosystem, though the disposition of those locations is an ongoing strategic consideration.

T-Mobile, Metro by T-Mobile, and Mint Mobile apps/websites

Digital channels are critical for customer acquisition and service management. T-Mobile US, Inc. has aggressively optimized its web performance, which directly impacts conversion metrics. By prioritizing Core Web Vitals, the company achieved specific performance improvements:

• Website complaints were reduced by 20%.
• The visit-to-order rate grew by 60%.
• The cart-to-order rate increased by 32%.

These digital efforts contribute to the overall customer base, which reached a record high of 139.9 million total customer connections as of the third quarter of 2025. The third quarter of 2025 saw 2.35 million total postpaid net customer additions, demonstrating the effectiveness of all combined channels.

Fixed Wireless Access (FWA) modems shipped directly to homes

Direct-to-home FWA modem shipments represent a major growth vector for T-Mobile US, Inc.'s broadband segment. As of the end of the third quarter of 2025, the company had approximately 7.955 million 5G broadband customers. The third quarter of 2025 alone saw 506,000 5G broadband net additions. The company raised its full-year 2025 guidance for total postpaid net customer additions to a range of 7.2 million to 7.4 million. The long-term ambition for this channel is a target of 12 million 5G FWA subscribers by 2028. Currently, T-Mobile US, Inc. has over 1 million potential customers on its fixed wireless waiting list, constrained by network capacity.

The scale of FWA modem deployment is significant, with global 5G FWA CPE shipments expected to reach 20.1 million in 2025 across the surveyed sample.

Fiber network infrastructure from joint ventures

T-Mobile US, Inc. is rapidly expanding its fiber reach through majority-owned joint ventures, which are treated as distinct channels for high-speed, fixed broadband service. The company acquired 755,000 fiber customers from Metronet and other acquisitions in Q3 2025, following the acquisition of 97,000 fiber customers from Lumos in Q2 2025.

The structure and scale of these fiber JVs are detailed below:

Joint Venture Partner	Acquired Asset	T-Mobile US, Inc. Investment	Initial Homes Passed	Target Homes Passed
KKR	Metronet	$4.9 billion (50% stake)	Over 2 million homes/businesses	6.5 million by end of 2030
EQT	Lumos	$950 million initial + $500 million planned	475,000 homes	3.5 million by end of 2028

Additionally, T-Mobile US, Inc. quietly moved to acquire US Internet, which provides fiber in the Minnesota Twin Cities area, reaching an estimated 192,000 locations. The overall fiber footprint goal for T-Mobile US, Inc. is to reach 12 million to 15 million fiber homes passed by 2030.

T-Mobile US, Inc. (TMUS) - Canvas Business Model: Customer Segments

You're looking at the core of T-Mobile US, Inc.'s growth engine as of late 2025. The company's strategy clearly targets multiple distinct groups, but the heavy lifting is coming from the premium wireless side and the rapidly expanding home internet segment. Honestly, the numbers coming out of Q3 2025 show they are executing on their postpaid promises.

High-value Postpaid Consumers

This segment is where T-Mobile US, Inc. is capturing the most lucrative share. They are seeing industry-leading growth here, which helps boost the overall Average Revenue Per Account (ARPA). For the full year 2025, management has raised its expectation for postpaid phone net customer additions to be around 3.3 million. That's a significant jump from earlier guidance.

Looking at the most recent quarter, Q3 2025, the performance was exceptional:

• Postpaid phone net customer additions hit 1.0 million, their best Q3 in over a decade.
• Total postpaid net customer additions for the quarter reached 2.3 million.
• Postpaid net account additions were 396 thousand, marking an all-time best for the company.
• Postpaid service revenues for Q3 2025 were $14.9 billion, growing 12% year-over-year.

The average postpaid ARPA, excluding the dilutive impacts from recent acquisitions, stood at $149.44 in Q3 2025. That's the value you want to see coming from your most loyal customers.

Price-sensitive Prepaid Consumers (Metro by T-Mobile, Mint Mobile)

While postpaid is the growth driver, the prepaid segment, which includes brands like Metro by T-Mobile and Mint Mobile, is still contributing positive net adds, though at a much smaller scale than postpaid. This group is definitely more sensitive to price, which shows up in the Average Revenue Per User (ARPU) figures.

Here's the recent snapshot for this segment:

• Prepaid net customer additions in Q3 2025 were 43 thousand lines.
• Prepaid churn in Q3 2025 improved slightly to 2.77%.
• The Prepaid ARPU for Q3 2025 was reported at $33.93.

The migration of customers from prepaid to postpaid plans is also a factor influencing the net adds here, so you have to look at the total picture.

Residential Broadband Users

T-Mobile US, Inc.'s Fixed Wireless Access (FWA) and fiber offerings are a major focus, positioning the company as a serious competitor in the home internet space. The growth here is robust, especially in 5G FWA.

By the end of Q3 2025, the numbers looked like this:

Metric	Q3 2025 Net Adds	End of Q3 2025 Base
Total Broadband Net Additions	560 thousand	Nearly 8.9 million total broadband subscribers
5G Broadband Net Additions	506 thousand	About 8.0 million 5G broadband customers
Fiber Net Additions	54 thousand	Guidance for full-year 2025 fiber net adds was raised to 130 thousand

The company is actively expanding its fiber footprint through joint ventures, aiming for a capital-light structure to pass 12-15 million homes with fiber.

Business and Government (T-Mobile for Business, T-Priority public safety)

Data on the exact size of the Business and Government segment remains less granular in the latest public reports compared to consumer wireless. However, the strategic intent is clear: T-Mobile for Business is working to close the gap with competitors.

What we know about the ambition for this segment is:

• The stated ambition was to double its enterprise market share from 10% to 20% by 2025.
• In Q1 2023, T-Mobile for Business reported one of its highest-ever phone net add quarters and the lowest business phone churn in its history.

You can expect this segment to be a key area for future detailed reporting as they continue to push for share gains.

Mobile Virtual Network Operators (MVNOs) and wholesale partners

This segment is undergoing a transition, largely due to the cycling out of certain wholesale agreements. While MVNOs are vital partners, their revenue contribution has been temporarily impacted by customer migration off the T-Mobile US, Inc. network.

The financial expectation for this channel in 2025 was specific:

• Wholesale revenue was expected to see 2025 as the low point for the year.
• This decline was attributed to TracFone and Dish offloading from T-Mobile US, Inc.'s network.

Management projected growth in wholesale revenue would resume after 2025.

T-Mobile US, Inc. (TMUS) - Canvas Business Model: Cost Structure

The Cost Structure for T-Mobile US, Inc. is heavily weighted toward network investment and customer acquisition, reflecting its ongoing commitment to network superiority and market share growth, especially following the UScellular acquisition.

Capital Expenditures (CapEx) for 5G network expansion remains a dominant cost driver. The updated full-year cash CapEx guidance for 2025 is now approximately $10 billion, an increase of $500 million driven by the inclusion of UScellular assets. This spending funds continued 5G expansion, fiber rollout, and new technology deployments.

Network operating and maintenance expenses are embedded within the total operating costs. For the twelve months ending September 30, 2025, T-Mobile US reported total operating expenses of $66.718 billion. The integration of UScellular is expected to yield annual run-rate cost synergies of approximately $1.2 billion, which includes about $950 million in operating expense savings.

Sales and marketing costs for customer acquisition reflect the competitive environment. The latest twelve months (LTM) Selling and Marketing Expense, peaking in September 2025, was reported at $3.539 billion. This cost supports the aggressive postpaid net customer addition targets.

Depreciation and Amortization (D&A) of network assets is a significant non-cash charge. Full-year 2024 D&A was approximately $12.92 billion. For the fourth quarter of 2025 alone, D&A expense is anticipated to be approximately $3.7 billion, reflecting the impact of recent acquisitions and asset acceleration initiatives. The UScellular acquisition alone contributed an estimated $175 million in D&A expense in the third quarter of 2025.

Integration costs for UScellular acquisition are substantial one-time expenses. The total estimated one-time cost to achieve integration and realize synergies remains at approximately $2.6 billion. For the fourth quarter of 2025, costs to achieve, primarily merger-related costs for UScellular, are expected to be approximately $300 million.

Here's a breakdown of the key cost components and related figures:

Cost Component	2025 Financial Data Point	Amount/Value
Total Operating Expenses (12 Months Ended Sep 30, 2025)	Total Operating Expenses	$66.718 billion
Capital Expenditures (Updated Full Year Cash Capex)	Cash CapEx Guidance	$10 billion
Sales & Marketing Expense (LTM as of Sep 2025)	Selling and Marketing Expense Peak	$3.539 billion
UScellular Integration Costs (Total to Achieve)	Total One-Time Integration Cost	$2.6 billion
Depreciation & Amortization (Q4 2025 Projection)	Projected Q4 D&A Expense	$3.7 billion

The cost structure also involves specific synergy-related savings that offset operating expenses:

• Annual run-rate cost synergies from UScellular: $1.2 billion total.
• Portion of synergies allocated to Capital Expenditure reduction: Approximately $250 million.
• Portion of synergies allocated to Operating Expense reduction: Approximately $950 million.

Furthermore, accelerated integration timelines resulted in non-cash costs in Q3 2025 related to technology transformation, totaling approximately $350 million, which included accelerated depreciation.

T-Mobile US, Inc. (TMUS) - Canvas Business Model: Revenue Streams

The revenue streams for T-Mobile US, Inc. are heavily anchored in recurring service fees, supplemented by device sales and growing broadband offerings.

Postpaid Service Revenue is the primary driver, showing significant momentum. For the third quarter of 2025, this segment generated $14.9 billion, marking a 12% year-over-year increase. Total service revenues for Q3 2025 reached $18.2 billion, which was a 9% year-over-year growth. This quality of revenue growth suggests customers are choosing higher-value plans, as evidenced by the expected full-year postpaid Average Revenue Per Account (ARPA) growth of at least 3.5%.

The following table details the key revenue components for T-Mobile US, Inc. based on the third quarter of 2025 results:

Revenue Component	Q3 2025 Amount	Year-over-Year Change
Total Revenues	$21.957 billion	3.9% or 9%
Total Service Revenues	$18.2 billion	9%
Postpaid Service Revenues	$14.9 billion	12%
Equipment Revenues	$3.5 billion	8%

Equipment Revenue, derived from device sales and accessories, contributed $3.5 billion in Q3 2025, growing 8% year-over-year. This growth was supported by strong interest in new devices, including the AI-powered iPhone series.

Fixed Wireless Access (FWA) and Fiber Broadband subscriptions represent a significant growth vector. T-Mobile US, Inc. added 560 thousand total broadband net customers in Q3 2025. Within that, 5G broadband net additions were 506 thousand. The total number of broadband subscribers reached nearly 8.9 million by the end of the quarter, a 48 percent increase from the prior year. The company maintains a long-term target of 12 million FWA customers by 2028. Fiber expansion is also advancing through joint ventures, with an investment of $4.6 billion in Metronet and $932 million in Lumos during the quarter.

Prepaid Service Revenue, which includes the Metro by T-Mobile brand, contributes to the overall customer base, though specific Q3 2025 revenue figures for this segment aren't detailed separately from total service revenue. The company reported a postpaid phone net addition of 1.0 million in Q3 2025. The prepaid churn rate for the quarter was 2.77%.

Wholesale and other services revenue is currently undergoing a transition. Management indicated that wholesale revenue was expected to decline in 2025 due to TracFone and Dish offloading from the network, with growth anticipated thereafter. Beyond core telecom services, T-Mobile US, Inc. expanded into adjacent areas through acquisitions, completing the Vistar Media acquisition for $617 million and the Blis acquisition for $174 million in Q3 2025.

• Total postpaid net customer additions in Q3 2025 were 2.3 million.
• Postpaid phone net additions for Q3 2025 were 1.0 million.
• Postpaid phone churn for Q3 2025 was 0.89%.
• The company repurchased $2.5 billion in common stock during Q3 2025.